Italy Unveils New Pact to Raise Productivity

By

Christopher Emsden

Nov. 21, 2012 6:57 p.m. ET

ROME -- The Italian government said late Wednesday that business lobbies and labor unions had agreed to a "productivity pact" -- a set of rules governing labor contracts that is aimed at increasing competitiveness in the euro zone's third-largest economy.

The government pledged €2.1 billion in tax incentives to persuade unions and business groups to seal the pact.